Mortgage Down Payment

by Anne
(Dayton)

Ask Kate about mortgage down payment: Hi Kate, If I refinance with another mortgage company do I have to pay another deposit? We paid $147k for our house and only owe $119k. ***zz-c2-ad.shtml***Anne continues... An agent at our credit union suggested we put down another $7,000. Is this another mortgage down payment that's required or just a way to reduce the interest?

Under the President's refinance rules can we get a break for refinancing to a lower interest rate?

Kate Answers: Mortgage Down Payment

***zz-portrait-left.shtml*** Dear Anne,

Generally a mortgage down payment is associated with buying a house. During a refinance, it is called a principal reduction or paying down the mortgage.

Being required to pay down your loan amount is not triggered by switching to a different bank unless of course this company does not have sufficient loan programs to match the needs of its borrowers.

So I'd certainly ask your credit union if they have alternate programs such as FHA home loans.

Kate's Tips

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